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iPhone Dev Team has released another Redsn0w update. The version 0.9.11b4 of Redsn0w completes tethered jailbreak support for iOS 5.1.1 on older devices. It also allows you to stitch and create custom iOS 5.1.1 firmware.

So those of you who are thinking to upgrade to iOS 5.1.1 and also want to preserve their baseband can first create custom IPSW and then restore to it. After that they can jailbreak it. Remember its still a tethered jailbreak solution for all devices except for the old bootrom iPhone 3GS.